The Lieberman-Warner bill regulates the electricity, industrial, and transportation sectors. Allowances are allocated to
eligible entities that may or may not be required to comply with the program. Initially, 26.5 percent of allowances will be allocated,
increasing up to 69.5 percent in 2050.
The bill allows unlimited banking and borrowing, as well as compliance flexibility through the use of offset credits. Auction proceeds will
be used for technology deployment, assistance programs and mitigation of the impacts on wildlife.
On December 5, the Senate Environmental and Public Works Committee reported the bill, as amended, by an 11-8 vote. All Democrats and Independents on the Committee plus Senator Warner voted yea, all republicans except Warner voted nay.
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